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Spread betting is a speculative strategy in which participants make bets on the price movements of a security. At its most basic level, this kind of speculation involves placing wagers on the bid and ask prices provided by a spread-betting company. Because spread betting does not involve buying or selling the underlying asset, it is a type of financial derivatives trading. Participants are able to target a vast array of…
Traders use exponential moving averages (EMAs) in an effort to try to meet their investment objectives.
Who Needs To Know About Risk-On Trading? Forex traders may benefit from learning about risk-on trading, as being aware of such strategies could help them more efficiently understand market shifts. Some investors believe that the broader asset markets, including those devoted to currencies, revolve around shifts in overall sentiment and how these fluctuations motivate investors to buy certain securities instead of others. Key Role Of News Many believe that the…
Why Learn About Risk-Off Trading? Some investors harness risk-off trading in an effort to meet their investment objectives. This particular strategy hinges on the broader sentiment of the global asset markets, with the belief that the rising or falling confidence of investors can motivate them to favour one asset class over another. By learning about risk-off trading, investors can obtain one more tool for use in their arsenal. News And…
Discretionary trading is the practice of executing trades based solely on the judgment of the individual trader.
The bull currency spread is commonly used when traders expect that a currency will appreciate moderately, but not by a lot.
A bear currency spread—like its counterpart, a bull currency spread—involves buying an option (the long leg) for a particular currency and selling an option (the short leg) for the same currency and expiration at a different exercise price.
Range trading is one technique forex traders can use in an effort to meet their investment objectives. Some traders use this approach in an attempt to identify ranges, predict how a currency or currency pair will behave, and profit from such expectations. As always, no investment strategy is guaranteed. Certain traders harness ranges to forecast that a currency will remain between certain highs and lows. However, the currency could break…
What Is A "Trailing Stop"? In order to properly define a trailing stop, we must first define a simple stop loss. A stop loss order is an order to buy or sell a given security at a specific price, once the market hits the defined stop loss price. At that point, the original market position is rendered "net zero" or "flat." A trailing stop is a bit more complex in…
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